Bank credit is an alternative form of financing to personal loans. It is a tool that banks make available to their customers, allowing them to have an overdraft or have liquidity available in their current account.

The main difference with a loan is that the bank does not lend a sum of money for a certain period of time, but advances funds to the customer temporarily.

Bank credit as a form of credit

Credit is, therefore, a form of credit given to a bank’s customers. You, therefore, need to have a checking account, whether you are a natural or legal person. In order to take advantage of the credit line, also called overdraft, this current account must-have requirements, money transfers, balance sheets, and income.

The bank credit we have seen allows you to have cash despite the negative balance. The amount is agreed with the bank, with which the return times and installments will also be agreed upon. In fact, by signing a contract between the bank and the customer, the credit line is granted, the times, duration and characteristics of this credit will be expressed in the document.

How to apply for a bank credit

How to apply for a bank credit

The request for bank credit is not a difficult and complicated thing, you can do it through the bank by filling out a form. Acceptance of the request is examined by the credit institution, which considers the various criteria and the customer’s situation whether or not its feasibility and therefore the granting of the credit line are allowed.

The bank will normally check, as for personal loans, if your name is in good standing with the payments to the risk center and after a careful evaluation will decide whether to give you credit. We can advise you to check the name first at the online risk center, saving time and money.

Is bank credit convenient?

Is bank credit convenient?

Having assessed the bureaucratic part for the granting of the credit line, we analyze the convenience. In this particular method, there are additional costs compared to financing. The “fund availability commission” is, in fact, a fixed tax, which is applied to the entire credit line according to the amount granted.

It is a quarterly fixed tax. If you hypothetically asked for $ 5,000 you will pay $ 25 per quarter for a total of $ 100 per year, regardless of whether you use the credit line or not.

In addition, there are the debtor interests that are required by the bank to be added, and therefore even if the early personal alternative is a valid one, as in all things verified that it is actually the most suitable form for your customer needs to avoid paying, interest and expenses exceeding real needs.

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